Cover-More has suspended Australian and New Zealand sales of its Cancel for Any Reason (CFAR) travel insurance as the coronavirus outbreak escalates and interest in the product rises.

The Zurich-owned insurer says sales stopped at the end of Friday and will remain on hold for an interim period while the risk profile and immediate sustainability of the cover is assessed.

“We have not taken this decision lightly and we stress that we hope this suspension will enable us to keep CFAR in market in the longer term,” Cover-More CEO Asia-Pacific Judith Crompton said.

Cover-More began offering Cancel for Any Reason as an add-on in April 2018 and it was purchased by more than 57,000 people in its first year. The cover has been sold through retail travel networks such as Flight Centre and independent travel agents.

Cover-More says there has been “a lot of interest” in Cancel For Any Reason insurance as a result of the coronavirus.

“We are in uncharted waters and unprecedented times for the travel industry with the global impact of the coronavirus outbreak, and we will continue to do everything we can to support our travel agents and partners and Australian and New Zealand travellers,” Ms Crompton said.